Property developer Greg Shand's Barana Group makes $15.5m Sydney CBD purchase
Property developer Greg Shand has purchased the NSW Leagues Club building in the Sydney CBD for $15.5 million.
The building runs between Phillip and Elizabeth streets and will retain current tenant, Travelodge until 2050, with a 49-year option.
The club originally took two strata to the market, floors six to nine and levels B1, B2, three, four and five and had intended to retain Ground Elizabeth Street, Ground Phillip Street and levels one and two.
Due to strong interest it sold the entire building and leased back Ground Elizabeth, Ground Phillip and levels one and two for a term of three years.
Collier’s International agent Jon Chomley said they faced many challenges in the sale of the building.
“The marketing process was challenging due to the long term lease back to the Travelodge, the club wanting to remain in the premises and preferably own their floors and the issues around the age of the building,” he said.
The club received four offers for the strata and five for the entire building, with two bids being false starts as the groups could not support their prices.
Greg Shand is chief executive of the Barana Group real estate and investment company, which currently has an investment portfolio of $450 million, with investments in Australia, the UK, Japan and Continental Europe.
In September last year the group purchased the Novotel St Kilda hotel in Melbourne for $55 million, at a yield of 8%.
